Latest news with #STKL
Yahoo
6 days ago
- Business
- Yahoo
SunOpta's (NASDAQ:STKL) Q2 Sales Top Estimates, Stock Soars
Plant-based food and beverage company SunOpta (NASDAQ:STKL) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 12% year on year to $191.5 million. The company's full-year revenue guidance of $810 million at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.04 per share was $0.02 above analysts' consensus estimates. Is now the time to buy SunOpta? Find out in our full research report. SunOpta (STKL) Q2 CY2025 Highlights: Revenue: $191.5 million vs analyst estimates of $185.7 million (12% year-on-year growth, 3.1% beat) Adjusted EPS: $0.04 vs analyst estimates of $0.03 ($0.02 beat) Adjusted EBITDA: $22.74 million vs analyst estimates of $22.54 million (11.9% margin, 0.9% beat) The company lifted its revenue guidance for the full year to $810 million at the midpoint from $796.5 million, a 1.7% increase EBITDA guidance for the full year is $101 million at the midpoint, in line with analyst expectations Operating Margin: 5.5%, up from 1.5% in the same quarter last year Free Cash Flow was -$9.21 million compared to -$15.28 million in the same quarter last year Sales Volumes rose 14.4% year on year (26.9% in the same quarter last year) Market Capitalization: $610 million Company Overview Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $763.2 million in revenue over the past 12 months, SunOpta is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, SunOpta's demand was weak over the last three years. Its sales fell by 4.9% annually despite consumers buying more of its products. We'll explore what this means in the "Volume Growth" section. This quarter, SunOpta reported year-on-year revenue growth of 12%, and its $191.5 million of revenue exceeded Wall Street's estimates by 3.1%. Looking ahead, sell-side analysts expect revenue to grow 8.7% over the next 12 months, an acceleration versus the last three years. This projection is commendable and implies its newer products will spur better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Volume Growth Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. SunOpta's average quarterly volume growth of 16.3% over the last two years has beaten the competition by a long shot. This is great because companies with significant volume growth are needles in a haystack in the stable consumer staples sector. In SunOpta's Q2 2025, sales volumes jumped 14.4% year on year. This result shows the business is staying on track, but the deceleration suggests growth is getting harder to come by. Key Takeaways from SunOpta's Q2 Results We were impressed by how significantly SunOpta blew past analysts' EPS expectations this quarter. We were also glad its revenue outperformed Wall Street's estimates. On the other hand, its gross margin missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 7.1% to $5.55 immediately after reporting. SunOpta put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
STKL Q1 Earnings Call: Volume Growth and Operational Progress Drive Upgraded Outlook
Plant-based food and beverage company SunOpta (NASDAQ:STKL) announced better-than-expected revenue in Q1 CY2025, with sales up 9.3% year on year to $201.6 million. The company's full-year revenue guidance of $796.5 million at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.04 per share was $0.03 above analysts' consensus estimates. Is now the time to buy STKL? Find out in our full research report (it's free). Revenue: $201.6 million vs analyst estimates of $194.5 million (9.3% year-on-year growth, 3.7% beat) Adjusted EPS: $0.04 vs analyst estimates of $0.01 ($0.03 beat) Adjusted EBITDA: $22.39 million vs analyst estimates of $21.27 million (11.1% margin, 5.3% beat) The company slightly lifted its revenue guidance for the full year to $796.5 million at the midpoint from $790 million EBITDA guidance for the full year is $101 million at the midpoint, above analyst estimates of $100.1 million Operating Margin: 5.2%, in line with the same quarter last year Sales Volumes rose 12.2% year on year (23.5% in the same quarter last year) Market Capitalization: $690 million SunOpta's first quarter results reflected steady volume-driven growth across its core categories, with management attributing the performance mainly to increased production capacity and customer demand in plant-based beverages, fruit snacks, and broth. CEO Brian Kocher emphasized, 'Our top five customers delivered year-over-year growth in Q1,' and highlighted the company's ability to unlock capacity in its manufacturing network, especially in the aseptic and fruit snacks facilities. While gross margin faced some pressure from investments in talent and temporary inefficiencies at the Midlothian plant, Kocher noted that the outperformance in the quarter was 'more on the capacity creation side than the demand side,' underscoring the operational improvements that enabled SunOpta to fulfill rising customer orders. Looking ahead, SunOpta's updated guidance is built on expectations of continued category growth and a robust sales pipeline, which management says now represents approximately 25% of annual projected revenue. Kocher pointed to ongoing product and channel diversification as key factors supporting 'a high degree of confidence in achieving our long-term revenue growth target of approximately 10%.' The company's margin outlook hinges on further unlocking manufacturing capacity, improving production yields, and executing a four-point operational plan to drive sequential margin improvements throughout the year. CFO Greg Gaba cautioned that while tariffs are a fluid risk, SunOpta intends to pass through incremental tariff costs, stating, 'We expect to substantially pass on all the incremental costs to our customers.' Management tied first-quarter growth to expanded capacity and broad demand across its product portfolio, while highlighting operational initiatives and external factors shaping profitability. Capacity unlock drove growth: Management cited increased production in both aseptic beverages and fruit snacks as the main contributor to volume gains, with Q1 output rising over 6% sequentially in the beverage network and 7% year-over-year in fruit snacks using existing equipment. Category and customer strength: All core categories—including plant-based beverages, fruit snacks, broth, and protein shakes—reported growth, with club channel and foodservice customers particularly outperforming. Kocher highlighted that 'each of our top five customers delivered year-over-year growth.' Operational challenges at Midlothian: The company is addressing a temporary bottleneck at its Midlothian facility due to a subscale wastewater system, which is limiting output and incurring excess costs. Management expects resolution by mid-2026, with continued reliance on other plants to meet demand until then. Margin improvement initiatives: A four-point operational plan is underway to boost gross margins, focusing on fixed cost leverage, production yield, labor productivity, and resolving technical bottlenecks. These efforts are expected to drive sequential expansion in gross margin for the remainder of the year and into 2026. Tariff cost strategy: SunOpta has begun communicating with customers to pass through new tariff-related costs on imported ingredients and products, aiming to minimize the impact on gross profit and adjusted EBITDA. Management does not expect a material hit to profitability, though revenue and margin rates may be affected by the pass-through approach. SunOpta's outlook is anchored by category growth, an expanding sales pipeline, and operational initiatives to improve margins and productivity. Sales pipeline momentum: Management identified a business development pipeline amounting to roughly 25% of annual sales, double the level of 15 months ago. This pipeline is diversified across categories and channels, and while not all will convert immediately, Kocher said it 'provides confidence in our long-term revenue growth target.' Operational execution risks: While the company anticipates sequential margin improvement from fixed cost leverage and yield initiatives, execution risks remain around fully realizing productivity gains and resolving the Midlothian bottleneck, which is expected to persist into mid-2026. Tariff and cost environment: The company expects to pass through most incremental tariff and raw material costs to customers, but acknowledges a timing lag and the possibility of short-term revenue and margin rate fluctuations due to evolving trade policy and input cost volatility. In coming quarters, the StockStory team will track (1) the pace of gross margin expansion from ongoing operational initiatives, (2) progress on resolving the Midlothian facility bottleneck, and (3) sustained customer and category momentum reflected in pipeline conversion. Monitoring the effectiveness of SunOpta's tariff pass-through strategy and its impact on both revenue and margin rates will also be important. SunOpta currently trades at a forward P/E ratio of 29.8×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
1 Russell 2000 Stock with Promising Prospects and 2 to Approach with Caution
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. That said, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up. Market Cap: $674.7 million Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Why Are We Cautious About STKL? Annual revenue declines of 4.2% over the last three years indicate problems with its market positioning Smaller revenue base of $742.7 million means it hasn't achieved the economies of scale that some industry juggernauts enjoy Gross margin of 16% is an output of its commoditized products SunOpta is trading at $5.75 per share, or 29.1x forward P/E. To fully understand why you should be careful with STKL, check out our full research report (it's free). Market Cap: $343.8 million With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories. Why Do We Think MOV Will Underperform? Annual sales declines of 6% for the past two years show its products and services struggled to connect with the market Operating margin of 4.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Movado's stock price of $15.99 implies a valuation ratio of 0.5x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why MOV doesn't pass our bar. Market Cap: $1.27 billion Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components. Why Are We Fans of DXPE? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient Share repurchases over the last two years enabled its annual earnings per share growth of 34.6% to outpace its revenue gains Improving returns on capital reflect management's ability to monetize investments At $80.99 per share, DXP trades at 14.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
SunOpta (NASDAQ:STKL) Delivers Impressive Q1, Stock Soars
Plant-based food and beverage company SunOpta (NASDAQ:STKL) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 10.3% year on year to $201.6 million. The company's full-year revenue guidance of $796.5 million at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.04 per share was $0.02 above analysts' consensus estimates. Is now the time to buy SunOpta? Find out in our full research report. SunOpta (STKL) Q1 CY2025 Highlights: Revenue: $201.6 million vs analyst estimates of $194.5 million (10.3% year-on-year growth, 3.7% beat) Adjusted EPS: $0.04 vs analyst estimates of $0.02 ($0.02 beat) Adjusted EBITDA: $22.39 million vs analyst estimates of $21.27 million (11.1% margin, 5.3% beat) The company slightly lifted its revenue guidance for the full year to $796.5 million at the midpoint from $790 million EBITDA guidance for the full year is $101 million at the midpoint, above analyst estimates of $100.1 million Operating Margin: 5.2%, in line with the same quarter last year Free Cash Flow was $9.55 million, up from -$2.28 million in the same quarter last year Sales Volumes rose 12.2% year on year (23.5% in the same quarter last year) Market Capitalization: $556.9 million "First quarter results exceeded our expectations, and we again delivered double-digit volume growth driven by broad-based gains across segments, products and customers,' said Brian Kocher, Chief Executive Officer of SunOpta. Company Overview Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Sales Growth A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $742.7 million in revenue over the past 12 months, SunOpta is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, SunOpta's revenue declined by 4.2% per year over the last three years despite consumers buying more of its products. We'll explore what this means in the "Volume Growth" section. SunOpta Quarterly Revenue This quarter, SunOpta reported year-on-year revenue growth of 10.3%, and its $201.6 million of revenue exceeded Wall Street's estimates by 3.7%. Looking ahead, sell-side analysts expect revenue to grow 8.2% over the next 12 months, an acceleration versus the last three years. This projection is noteworthy and implies its newer products will spur better top-line performance.
Yahoo
01-04-2025
- Business
- Yahoo
3 Reasons to Sell STKL and 1 Stock to Buy Instead
What a brutal six months it's been for SunOpta. The stock has dropped 22% and now trades at $5.02, rattling many shareholders. This may have investors wondering how to approach the situation. Is there a buying opportunity in SunOpta, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. Even with the cheaper entry price, we're cautious about SunOpta. Here are three reasons why you should be careful with STKL and a stock we'd rather own. Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. SunOpta's demand was weak over the last three years as its sales fell at a 3.8% annual rate. This wasn't a great result and signals it's a lower quality business. With $724 million in revenue over the past 12 months, SunOpta is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. All else equal, we prefer higher gross margins because they make it easier to generate more operating profits and indicate that a company commands pricing power by offering more differentiated products. SunOpta has bad unit economics for a consumer staples company, signaling it operates in a competitive market and lacks pricing power because its products can be substituted. As you can see below, it averaged a 16.6% gross margin over the last two years. That means SunOpta paid its suppliers a lot of money ($83.41 for every $100 in revenue) to run its business. SunOpta's business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 18.4× forward price-to-earnings (or $5.02 per share). This valuation tells us it's a bit of a market darling with a lot of good news priced in - we think there are better stocks to buy right now. We'd recommend looking at the Amazon and PayPal of Latin America. The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we're here to help you pick them. Get started by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
